The Central Goods and Services Tax Act, 2017
The Central Goods and Services Tax Rules, 2017
Chapter-IX Payment of Tax
Rule 86: Electronic Credit Ledger.
86. (1) The electronic credit ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for input tax credit under the Act on the common portal and every claim of input tax credit under the Act shall be credited to the said ledger.
(2) The electronic credit ledger shall be debited to the extent of discharge of any liability in accordance with the provisions of section 49 1[or section 49A or section 49B,].
(3) Where a registered person has claimed refund of any unutilized amount from the electronic credit ledger in accordance with the provisions of section 54, the amount to the extent of the claim shall be debited in the said ledger.
(4) If the refund so filed is rejected, either fully or partly, the amount debited under sub-rule (3), to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officerC1 by an order made in FORM GST PMT-03.
2[(4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03.]
3[(4B) Where a registered person deposits the amount of erroneous refundC2 sanctioned to him, –
(a) under sub-section (3) of section 54 of the Act, or
(b) under sub-rule (3) of rule 96, 4[***]
along with interest and penalty, wherever applicable, through FORM GST DRC-03, by debiting the electronic cash ledger, on his own or on being pointed out, an amount equivalent to the amount of erroneous refund deposited by the registered person shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03A.]
(5) Save as provided in the provisions of this Chapter, no entry shall be made directly in the electronic credit ledger under any circumstance.
(6) A registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM GST PMT-04.
Explanation.– For the purposes of this rule, it is hereby clarified that a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officerC1 that he shall not file an appeal.
References
Enforcement:
Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 663(E) dated 28.06.2017].
Amendments:
1. Inserted by Central Goods and Services Tax (Amendment) Rules, 2019 vide Notification No. 03/2019-Central Tax dated 29th January, 2019, w.e.f. 01.02.2019.
2. Inserted by Central Goods and Services Tax (Third Amendment) Rules, 2020 vide Notification No. 16/2020-Central Tax dated 23rd March, 2020, w.e.f. 23.03.2020.
3. Inserted by Central Goods and Services Tax (Amendment) Rules, 2022 vide Notification No. 14/2022-Central Tax dated 5th July, 2022, w.e.f. 05.07.2022.
4. Omitted Inserted by Central Goods and Services Tax (Second Amendment) Rules, 2024 vide Notification No. 20/2024-Central Tax dated 8th October, 2024, w.e.f. 08.10.2024, the words: “in contravention of sub-rule (10) of rule 96,”.
Circulars:
C1. Proper officer relating to provisions other than Registration and Composition, refer Circular No. 3/3/2017-GST dated 05.07.2017.
C2. Categories of refunds where re-credit can be done using FORM GST PMT-03A and Procedure for re-credit of amount in electronic credit ledger.[Circular No. 174/06/2022-GST dated 06.07.2022]
C3. Any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person. However, as output tax does not include tax payable under reverse charge mechanism, implying thereby that the electronic credit ledger cannot be used for making payment of any tax which is payable under reverse charge mechanism.[Circular No. 172/04/2022-GST dated 06.07.2022]